Cauldron said in a statement to the ASX on Tuesday morning that public disclosures showed that Betashares currently holds 15.8 million Cauldron shares worth $678,352.

Major endorsement

Cauldron said that inclusion in the exchange-traded fund (ETF) was an important milestone for the company, "reflecting the Company's growing relevance within the global uranium sector".

The company went on to say:

Moreover, the company considers ETF inclusion extremely positive as it will likely enhance global investor awareness of Cauldron, broaden access to institutional and passive capital flows, support liquidity and trading volumes over time; and reinforce Cauldron's exposure to the nuclear energy thematic, which is experiencing strong global momentum.

Cauldron Energy Chief Executive Officer Jonathan Fisher added:

Inclusion in the BetaShares Global Uranium ETF is a strong endorsement of Cauldron's progress and positioning within the uranium sector. As global capital continues to flow into nuclear energy and uranium equities, inclusion in a leading ETF such as URNM enhances our visibility to a broader investor base and supports our ongoing growth strategy.

Strong returns

The URNM ETF, according to its website, has returned 89.64% over the year to the end of March, and 26.47% per annum over five years.

The ETF says this regarding its objectives:

Nuclear energy is increasingly being accepted as a safe, reliable, low-carbon energy source and seen as a critical supplementary means of meeting the world's growing energy demands. As a result, demand for uranium to fuel nuclear power stations is projected to grow strongly. URNM provides exposure to leading global companies involved in the mining, exploration, development and production of uranium, modern nuclear energy, or that hold physical uranium or uranium royalties.

The ETF is currently valued at $325.6 million.

The ETF holds a range of international and Australian companies, including Nac Kazatomprom and Cameco Corp internationally, and Paladin Energy Ltd (ASX: PDN), NexGen Energy Ltd (ASX: NXG), and Deep Yellow Ltd (ASX: DYL) locally.

Cauldron Energy shares were trading 11.6% higher in early trade at 4.8 cents. The company was valued at $88 million at the close of trade on Thursday.

Cauldron recently updated its mineral resource at its flagship Yanrey project in Western Australia, increasing it by 13.67 million pounds of uranium oxide to more than 55 million pounds.

The company is expecting to start its 2026 drilling program in May, with "many high priority targets''.

The post Why are shares in this uranium company surging today? appeared first on The Motley Fool Australia.